BlackBerry Limited (BB - Free Report) has created Advanced Technology Development Labs (BlackBerry Labs). This is going to be a new business unit operating at the forefront of R&D in the cybersecurity landscape. With this strategic move, the company aims to ensure that its customers are protected across all endpoints and verticals in the IoT.
Headed by chief technology officer, BlackBerry Labs will include a team of more than 120 software developers, architects, researchers, product leads and security experts. They will work toward the common goal of identifying, exploring and creating new technologies to ensure that the company is on the cutting edge of security innovation.
BlackBerry Labs’ initial projects will focus on machine learning approaches to security in partnership with the company’s existing Cylance, Enterprise and QNX business units. BlackBerry Labs will operate as the company’s own business unit solely focused on innovating and developing the technologies of tomorrow that will be necessary for success.
In the last earnings report, the cybersecurity software and services company’s quarterly GAAP revenues increased 16.2% year over year to $244 million. Software and services revenues were $239 million, up 24%.
Geographically, North America generated revenues of $179 million compared with $133 million in the year-ago quarter. Revenues from Europe, Middle East and Africa were $47 million, down 11.3% year over year, while revenues from other regions totaled $18 million, down 25%. BlackBerry topped earnings estimates twice in the trailing four quarters, delivering an average positive surprise of 31.3%.
For fiscal 2020, BlackBerry clipped its revenue outlook due to weak demand for its software from companies and government agencies amid increasing competitive pressure. It now expects non-GAAP revenue growth between 23% and 25%, compared with its previous forecasted growth between 23% and 27%.
Nevertheless, BlackBerry continues to invest in the right opportunities to drive long-term growth and profitability. Its strong product cycle, including exciting new launches in the next six months, instills optimism. The company is integrating its endpoint management and artificial intelligence technologies on one platform to address the high-growth endpoint security market.
Other prominent players in the industry include SoftBank Group Corp. (SFTBY - Free Report) , America Movil, S.A.B. de C.V. (AMX - Free Report) and China Unicom (Hong Kong) Limited (CHU - Free Report) .
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